Question

which of the following statements regarding switches within a non-registered account is true? a) all switches between the same fund family do not trigger a deemed disposition. b) switches between the same fund family do not trigger a deemed disposition if within the 10% free redemption limit. c) switches between funds of different fund families trigger a deemed disposition. d) switches between the same fund family do not result in a deemed disposition if the mutual fund units are trust funds.

Answer 1

Switches between the same fund family do not trigger a deemed disposition if within the 10% free redemption limit.

Step-by-step explanation:

The correct statement regarding switches within a non-registered account is:

b) Switches between the same fund family do not trigger a deemed disposition if within the 10% free redemption limit.

In other words, if you switch between funds within the same fund family and the switch is within the 10% free redemption limit, it will not result in a deemed disposition.

This means there will be no tax consequence associated with the switch.